Not Long to Retiral Age Changes

We are only weeks away from a major change in employment law which will affect many people throughout the country.   The Default Retiral Age where employees can be compulsorily retired because they have reached the age of 65 will go. The Default Retiral age will end finally on the 30th September but the last date on which and employee can be given notice of retirement under the DRA is actually 5th April. This change in the law has been subject to much political debate – with some groups complaining that this change will exacerbate the already high youth unemployment figures.  Whatever actually happens the new rules will present challenges to employers and employees alike.  For an employer to fix a retiral date without approval of individual employees the employer will have to be able to justify that choice of date.  This might be possible for certain types of employment – for example employment requiring exceptional physical fitness – but probably the bulk of employment will not come into that category. With no compulsory retirement in place it will be for employers and employees to agree retiral dates – presumably following communication and discussion. These discussions may be wide ranging covering performance of the employee together with their reasonable aims and aspirations.  Whilst the stated aim of the government is to reduce the number of employment tribunals it might be thought that a whole new generation of such claims might arise out of this legislation.  That remains to be seen of course. One great and obvious benefit for someone at the old Default Retiral Age will of course be the prospect of working on with all the financial benefits that may bring.   But for many the decision might not be so straightforward, with health, lifestyle and other issues to consider as well as the effects on tax and benefits of working on. How long would you wish to work on?  On the same hours or not? Perhaps it would be wise for all those approaching 65 to review fully their finances, their wishes, aspirations and health prior to entering into discussions on their employment.  It is probably much better to have planned sensibly for the future after such a review  – then discussions with the employer might just be that much more meaningful.